Shocker: Green Energy Company Awarded Millions of Dollars, Creates Only 3 Jobs
- Posted on June 26, 2012 at 8:36pm by
Becket Adams
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When the New Hampshire-based “green energy” company Mascoma Corp. was awarded its first multimillion-dollar grant by the state of Michigan in 2008, it promised to create at least 70 jobs by the end of 2012. Since then, the company has received an addition $100 million from federal government and has only created three jobs.
“This is a bad energy project,” Pat Egan, who lives near the plant in Kinross, Mich., told Michigan Capitol Confidential. “There haven’t been any jobs yet … the politicians are driving them towards a short-sighted approach.”
From 2008: Mascoma CEO Bruce Jamerson, Beth Stanek, General Motors’ director of energy and environment policy, and former Michigan Gov. Jennifer Granholm. (Credit: CNET)
When the people of Michigan were footed the bill for $20 million grant, state lawmakers hailed it as a milestone in the quest for clean, renewable energy.
“Michigan is proud to partner with Mascoma as a part of our commitment to lead the nation in alternative energy production,” former Gov. Jennifer Granholm said on Oct. 7, 2008. “This company, and their partners, will create jobs in Michigan.”
And she wasn’t the only one.
“I am pleased to have played a role in helping to bring this significant investment to Chippewa County,” said former U.S. Rep. Bart Stupak on Oct. 15, 2008.
Rep. Stupak? Oh, we remember him.
“On Dec. 14, 2011, Mascoma announced a cooperative agreement with the federal Department of Energy, in which Mascoma would receive ‘up to $80 million in DOE funding.’ This agreement came in addition to $20 million that Mascoma previously received from the Department of Energy for research and development,” Jarrett Skorup and Matthew Needham report.
“Though jobs projections and plant construction have been wildly exaggerated, the company is preparing to go public. On Sept. 16, 2011, Mascoma filed an S-1 with the SEC in preparation for an Initial Public Offering to raise $100 million,” the report adds.
However, even though the company feels confident enough to go for an IPO, the S-1 filed with the SEC shows that the company has a deficit of over $135 million. Even worse, a full 86 percent of the company’s revenue comes from government grants.
Now correct us if we’re wrong, but a company that depends almost entirely on the feds for revenues and has a deficit of that magnitude doesn’t sound like it’s ready to go public.
Come on Blaze! What do you know?
Think we’re out of line? How about this: “In the company’s filing with the SEC, Mascoma lists as a risk factor that it has ‘no experience in the markets in which we intend to operate.’”
Again, correct us if we’re wrong, but that sounds like an awfully big “risk factor.”
Lee Lynd, founder of Mascoma, works at an experimental ethanol facility (Credit: CNET)
And you know what else? It appears Michigan isn’t the only state to have been seriously disappointed by the “green energy” company.
“In November 2008, Mascoma was awarded a $910,000 grant from the Next Generation Energy Board of Minnesota,” Michigan Capitol Confidential reports.
Then-Gov. Tim Pawlenty announced the grant and said: “The development of Minnesota’s first commercial scale cellulosic ethanol plant is closer to reality because of this joint venture.”
Yeah, that didn’t work out so well for the people of Minnesota. Mascoma’s Minnesota plant was shuttered in 2011 and the state has recovered only 5 percent of the grant money ($48,000).
“It may be too late to get the money back, but we ought to use this as a learning lesson and never step into it again,” said John Frey, a member of the Next Generation Energy Board.
Can’t they learn these lessons on their own dime?
Click here to read the full report.
(H/T: Watchdog.org)
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Comments (57)
Wartface
Posted on June 27, 2012 at 5:47amWhen those that feel “entitled” elect their own to run the Government… The freebies expand!
Report Post »JRook
Posted on June 27, 2012 at 10:50amAs many negative articles about alternative energy as possible, move to Texas. Hmmm no chance there is any Koch Bros. or other oil money invested in Mercury… is there?
Report Post »Shifty6
Posted on June 27, 2012 at 2:42pmJrook are you so brain damaged to not see the difference between the Koch bro. investing their OWN money in what they want, vs the government taking YOUR money and MY money and essentially giving it to a friend of the President? Not ONE!!!! of these green energy companies have even survived, let alone become viable.
Report Post »Michigan Vacation
Posted on June 27, 2012 at 5:18pmFirst – Jennifer Granholm, the Mich Gov for 8 years, allowed Michigan to LOSE 1 Million jobs in total during her regime. She is a catastrophe.
Second – If you audit the any of the state or Federal Gov Grants that are primarily JOBS driven – you will see disaster after disaster.
It is a good bet the NONE of the jobs “predictions” are ever met when the final count of new created jobs is finally accounted for.
Michigan is beautiful though! – the Lakes, the fishing, the camping, the sunsets . . . just awesome!
Report Post »HumbleMan
Posted on June 28, 2012 at 10:01pmNot sure if this thread has gone cold, but it seems the right place to ask for some advice for combating a liberal claim. I can’t seem to find the facts, so please help.
What is the success rate for these green energy start-ups since 2008? This liberal acquaintance is telling me “it’s OK if we invest in 100 green energy companies and 10 of them fail”. Now it seems to me I can‘t find how many we’ve given government funds, and how many have gone belly-up. My heart tells me it’s more like 9 of 10 fail, not 9 of 10 succeed. I’d rather go with fact than feeling (which is what differentiates a conservative from a liberal like JROOK).
Help!
Report Post »AZMommy
Posted on June 27, 2012 at 1:16amIs there a clawback provision with these grants, like the one used to recoup Bernie Madoff’s loses from investors?
Report Post »FugMan
Posted on June 27, 2012 at 12:44amOf course not. Those millions go to those 3 as salary. Thanks taxpayers!!
Report Post »moreteaplease
Posted on June 27, 2012 at 12:33pmBINGO!
All of these “green companies” are nothing more than people trying to grab as much tax payer money as our gullible government will throw at them and then running off with stuffed pockets.
Report Post »Constructionist
Posted on June 27, 2012 at 12:20amWe have “no experience in the markets in which we intend to operate.”
“No worries, either does this administration… federal grant approved.”
Report Post »blamb61
Posted on June 26, 2012 at 11:35pmIt should be illegal for the government to offer these kind of grants. How can a “green” company that doesn’t get these grants compete with the ones that do. There is no insentive for these companies that get all these grants to stay viable. They take the money and run. They have no skin in the game. It is criminal. I sure hope Romney is elected and that all this kind of nonsense can be stopped!
Report Post »SHOWMESTATEGUY
Posted on June 26, 2012 at 11:23pmIt’s not about jobs, it’s aobut giving back to the democratic party. A large part of that money will end up re-electing a democrat somewhere? American liberals have to be the most stupid people right after the Greeks.
Report Post »HorseCrazy
Posted on June 27, 2012 at 12:05amyou’ve got that right. it is like usual nothing but a feel good line for the dems and a payoff to their pals.
Report Post »urnokid
Posted on June 27, 2012 at 7:08amwhat do you mean stupid? They are the ones receiving millions of dollars, we are the ones paying .
Report Post »RevRiles
Posted on June 26, 2012 at 11:22pmHas anybody looked up how many unusable waste products are created by the recycling process? :)
Report Post »TLS
Posted on June 26, 2012 at 11:20pmWho ever can replace fossil fuel with so called green energy will make billions! When it is cost effective. The free market will find it.
Report Post »MAMMY_NUNN
Posted on June 26, 2012 at 11:02pmIf Granholmn was involved it was doomed to failure.
Report Post »Sue Dohnim
Posted on June 26, 2012 at 10:02pm“Mascoma Corporation is Founded
By the turn of the millennium, Lee Lynd’s and Charles Wyman’s … Mascoma Corporation was founded by Wyman, Lynd and Bob Johnsen with initial funding from Khosla Ventures and Flagship Ventures.”
Khosla Ventures is Vinod Khosla, an Obama bundler and a heavy investor and receiver of
government funds through many Green Tech Companies..
Vinod Khosla: Obama donor, DNC donor, Obama advisor. Part owner of Coskata which received $250 million in stimulus funds. Part owner of Nordic Wind Power which received $16 million in stimulus funding. Part owner of Alta Rock which received $25 million in stimulus funding.
http://nlpc.org/stories/2012/05/15/taxpayers-subsidize-forbes-green-billionaires-schemes
“Khosla’s ventures engaged in heavy lobbying in recent years also. KiOR spent $150,000 from 2010 through 2012; Gevo spent $360,000 from 2009 through 2012; and Khosla Ventures spent $70,000 in 2008. His lobbyists promoted the government use of biofuels, setting of renewable fuel standards, and incentives for those fuels. Also, Khosla’s Calera Corporation spent $540,000 from 2008 to 2011 lobbying Congress about Recovery Act programs “related to carbon (dioxide) conversion technology.”
Report Post »lovenfl3
Posted on June 26, 2012 at 10:18pmThat’s 3 more jobs than the half a billion dollars the Solyndra debacle created. I’m all for green energy…when it actually works. This administration is only taking care of their friends and “green energy” provides great cover for them.
http://www.youtube.com/watch?v=RqgR_1XRbJU
Report Post »The truth about fast & furious that you’re not hearing, even from Fox News.
The-Monk
Posted on June 26, 2012 at 11:52pm@lovenfl3
I’ve seen all that before. If you are sharp, there is an article on The Blaze right now that has a clue in it that will blow this whole thing out of the water. (Not a post but an article).
Can you find it? It’s one small paragraph with a very powerful clue. Congress is looking into it now and the guy from the video link doesn’t have a clue…..
Report Post »jhrusky
Posted on June 26, 2012 at 9:43pmSo how do these people actually apply for grants from the government? Government sites always send you to the SBA when looking to apply for monies for new ideas.
Do you have the an ‘insider’ to get wind of available grants?
Report Post »rickc34
Posted on June 26, 2012 at 10:14pmgreen is the new red
Report Post »MIBUGNU2
Posted on June 26, 2012 at 10:39pmDid you donate to DNC,Obama, or MO ? are you wealthy ?
Report Post »Do you know any Lobbyist ? are you from Chicago ? Do you
know Jarrett, Axelrod,or MO ?… Hell Pelosi can’t even get in
with this bunch..So I guess it’s back to the SBA for us……..
and the rest of Hard Working Americans…. OMG-2012
South Philly Boy
Posted on June 26, 2012 at 9:41pmMore PAYOFFS to DemonCratic CRONIES
Report Post »RightPolitically
Posted on June 26, 2012 at 9:39pmCommie bastards!
Report Post »frogg
Posted on June 26, 2012 at 9:27pmThis is all BS! Vote the BUMS out!!!!!!!!!!!!!!!!
Report Post »needmoinfo
Posted on June 26, 2012 at 9:23pmThey can quit pouring money into green energy anytime now. It is a good idea but it will take a lot longer to take off. Money will not speed up the process. It may never be the be all and end all. Stop throwing good money after bad. We ought to try and recover some of it.
Report Post »xena
Posted on June 26, 2012 at 9:22pmObama, lets get rid of the joker all he want to do is party with celebrities and athlethes.He has sprnt more money in the 3/12 years he has been in and blames Bush now that’s getting old.I want to see him impeached for all the crocked things he has done.If Nixon was impeached for Watergate than Obama should be also.
Report Post »nighttrainno9
Posted on June 26, 2012 at 9:16pmWell, thats also true of the man responsible for them getting
Report Post »the money. He has no experience in the economic world, he has
no experience in foreign policy, he has no military experience,
his only experience seems to be in scaming and conning.
Who else, obummer the great and powerful, (sarc. added).
deltaecho
Posted on June 26, 2012 at 9:03pmHey! I sold them a jar of jerky for $5! AND a pasty for $6!
Report Post »So they’ve created at least .0003 of a job.
9111315
Posted on June 26, 2012 at 8:56pmWhere did the money go? Subcontracts? Unions? Or did they spend it all at a weekend at Bernie Madoff’s?
Follow the money — that would be real investigative reporting.
Report Post »MIBUGNU2
Posted on June 26, 2012 at 9:16pmAnd No One saw this coming, HUH ??
Report Post »Need a list of ALL Obamas Greenie Projects..
Investagate the DOE,EPA, DOJ….OBAMA !!!!
Mr.Fitnah
Posted on June 26, 2012 at 8:54pmThe meltdown cant come soon enough.
Report Post »randy
Posted on June 26, 2012 at 8:51pmWhen the heII are people going to wake up?
Report Post »Green Energy is an Obama money laundering scheme to dump money in his campaign fund!
JEANNIEMAC
Posted on June 26, 2012 at 8:51pmhttp://www.teapartynation.com/profiles/blog/show?id=3355873%3ABlogPost%3A2070743
Report Post »The billionaires have a war chest of over 100 billion dollars to push their agenda. We, the People, still outnumber them. Liberty or death.
Plan B
Posted on June 26, 2012 at 8:49pmWell I’m just shocked!!
Report Post »MIBUGNU2
Posted on June 26, 2012 at 9:48pmI’m going to have a hard time coming up with a “SHOCKED” look..
Report Post »How about a “Oh, My!! Really??” look…..
Mutiny
Posted on June 26, 2012 at 8:47pmWhere is Romney on global warming these days?
Report Post »nighttrainno9
Posted on June 26, 2012 at 9:29pmwhat global warming??
Report Post »Mutiny
Posted on June 26, 2012 at 9:42pmGreen energy companies are there to “combat” global warming. Romney has/is for global warming. So I am just wondering which Romney is running today. Global warming Romney or non global warming Romney.
Report Post »abbygirl1994
Posted on June 26, 2012 at 8:44pmWhere the hell is the GOP, this needs to be investigated.. something stinks so bad you’d think someone had died! Come on, will someone in Washington do something.. besides sit on your arse.. Stop being cowards! DO SOMETHING!
Report Post »Steelheadisadouche
Posted on June 26, 2012 at 9:03pmThe regime saw the results Spain was having and thought…yeh, they thought they would blow a whole lot of taxes on crap the private sector could do 110% better to get the green religion vote. Billions on 3 jobs sounds a lot like community organizing/retribution.
Report Post »The-Real-Enrico
Posted on June 26, 2012 at 9:07pmIf it important to YOU then email, write and call YOUR local congressmen, governors, senators and etc. Their not going to say or do anything if you’re not willing to.
Report Post »